The pound sterling continues to rise in the Forex market. Well, the clear weakness of the dollar in comparison, has allowed the other currencies in the market to take the lead in operations.
The good news for the British currency continues to arrive. Some analysts are keeping an eye on the performance of the pound. But the stable steps that the UK has begun to take towards a speedy recovery path have generated confidence among traders and investors.
And although Brexit and the clear British economic recession continues to be a factor to consider. Investors have already adapted to this minimal feeling of uncertainty that the UK offers.
The British pound rises while the dollar falls
There is a phenomenon that has begun to be seen in the Forex market, since the dollar began to have a negative performance against other currencies.
Well, all the operations were redirected towards other currencies that promised more security and better returns for investors and traders. And this time, the pound sterling continues to rise thanks to this phenomenon.
The pound rose in Friday’s session. Which kept most investors out of making decisions about the British currency.
Another factor that has allowed the British pound to continue to rise is due to borrowing costs in Europe. Well, these costs have followed the US Treasury bonds this week. Which have been driven to new highs by an avalanche of debt issues in the American country.
Coupled with this, Britain is expected to release inflation data on Wednesday and retail sales on Friday next week, both expected to be lower. This could lead to further relaxation on the part of the Bank of England, according to Reuters analysts.
However, new cases of Coronavirus are increasing in some parts of the world. Which has led the British government to quarantine many tourists returning from vacation. Equally affecting the economy of the island.
Price of the pound to date
At the time of writing, the British pound was trading peer to the dollar at 1.3084. Demonstrating its clear bullish behavior against the dollar.
Well, it has risen almost 7% in the last three months against the US dollar, almost exclusively due to the weakening of the US currency. And, apparently, the British pound continues to rise.
Britain cannot afford another downturn in its economy. Not even one induced by the Coronavirus, after registering a 20% drop in GDP in the second quarter.
It is hoped that in October it will be possible to end a licensing plan that has allowed millions of people to keep their jobs. This with the goal of stabilizing the British economy again.
Finally, Prime Minister Boris Johnson ordered the reopening of the economy in England to be resumed. Saying that an increase in infections that prompted caution two weeks ago had leveled off.
Is this a clear sign of improvement for the British currency?